Bankruptcy for tax problems: It's a common myth that taxes or tax liabilities cannot be discharged in bankruptcy. There's almost never a week that goes by without a taxpayer sitting in my office and indicating to me, "Hey, I was told that taxes can't be discharged in bankruptcy." And that's a bit of a myth. It's been sort of promulgated by the IRS, Congress, and bankruptcy attorneys for a long, long time. However, there are actually some ways that you can discharge income.